
Saving to rebuild solidarity
Edito
Supporting a robust economic fabric
Louvain Coopération is constantly seeking to diversify and innovate in its methods of action.
The Belgian and European public subsidies we work with, while necessary and effective, are not the only means of action we must mobilise to fulfil our mission.
Our partners in the agricultural and rural world, cooperatives and farmers' organisations, challenge us on our ability to support them in their entrepreneurial development, beyond agroecological production techniques.
Processing and marketing units for their products would enable them to add value to their production while retaining control. However, this type of entrepreneurial project faces financing difficulties: excluded from subsidies, too risky for local banks or microfinance institutions, too small for social investors in Western countries.
The Kampani investment fund, of which Louvain Coopération is a founding member, offers financial tools tailored to the development of such initiatives.
The technical and strategic support provided by our programmes, coupled with Kampani's investment capabilities and requirements for the creation of agricultural SMEs, enables us to support a solid economic fabric that serves small farmers and combats global warming.
Félix Vanderstricht
Ecofeminism: for whom, for what?
While this movement takes many different forms – sometimes even diametrically opposed to one another – all ecofeminists are united by one certainty: that current society significantly compromises the fulfilment of women and nature.
Being an ecofeminist means committing to an alternative worldview, to the advent of a new paradigm open to so-called feminine values. It means advocating the replacement of the power relations characteristic of patriarchy with a relational ethic that values empathy and harmony among living beings.
In the Global South, the ecofeminist movement is perhaps even more important than in the Global North. Indeed, women living in this hemisphere, and especially in developing regions, are particularly affected by current ecological problems. In fact, they are generally responsible for food production and agriculture and are therefore in close contact with the land.
But it is precisely because they are responsible for food resources on a daily basis that these women so well reflect the spirit of ecofeminism. Deeply connected to the earth and holders of traditional knowledge focused on balance and sustainability, they seem to hold the key to the change that leading environmentalists are calling for.
Today, Louvain Coopération has withdrawn from all projects supporting microfinance institutions. However, there is one exception: UCMECS, or Union des Caisses Mutuelles d'Epargne et de Crédit des Savanes (Union of Mutual Savings and Credit Institutions of the Savanes). Based in Togo, in the Savanes region, this savings and credit structure was initially part of a larger organisation combining credit, savings, mutual health insurance, literacy and advice for farmers. Like other similar structures, UCMECS was forced by the Togolese and West African financial regulatory authorities to become autonomous. ‘Today, it consists of eight village funds, above which we have placed an umbrella organisation, the Union. The latter fulfils various missions aimed at improving and professionalising the entire network,’ explains Vincent Henin, food and economic security expert for Louvain Coopération.
"First, in 2004, we began supporting microfinance and mutual health insurance schemes. Then, from 2008 onwards, we moved to an integrated approach, which meant that we also supported literacy and agricultural advisory services promoted by UCMECS sister organisations. ‘ But why was this project an exception among all the microfinance initiatives supported by Louvain Coopération? ’We encountered the same difficulties as in other microfinance projects in rural areas, which require human and financial resources beyond our means. But UCMECS is a fundamentally sound organisation. It is managed by people who are committed to their social mission and who are able to deal with all the tensions that can arise in this type of initiative. We therefore truly believe that it is worth supporting," says Vincent Henin.
Today, UCMECS has more than 50,000 clients (up from less than 30,000 in 2012) and enjoys special support, which also sets it apart from other similar projects previously supported by Louvain Coopération. "We have created an informal consultation group to support UCMECS's activities. It consists of BRS (a Belgian non-profit organisation specialising in microfinance projects, see page 13), which provides technical support alongside Louvain Coopération in this project, SIDI (Solidarité Internationale pour le Développement et l'Investissement) and Alterfin. The latter two are currently the only sources of borrowing for UCMECS. Together, we coordinate our support for the operation of UCMECS, and Louvain Coopération, through its presence in Togo, supports the implementation of the various recommendations in the field."
In the South, Louvain Coopération is implementing numerous initiatives to combat poverty and debt. These include strategies to provide access to savings and credit. Starting out with traditional microfinance projects, Louvain Coopération has now moved more towards community microfinance. Here we take a closer look at these initiatives, which are helping to restore economic security to families.
‘One of our top priorities in the countries where we operate is to enable people to save. By building up capital, families can either invest in a business or cope with unforeseen events,’ explains Vincent Henin, food and economic security expert for Louvain Coopération. ‘When you work in microfinance, you realise that saving is one of the most effective ways of lifting people out of poverty.’
Since the early 2000s, Louvain Coopération has been involved in several microfinance projects. Each of the initiatives implemented had a threefold objective: to enable beneficiaries to save, to invest in starting or strengthening their small businesses, and to include microcredit funds in a broader project aimed at improving health or food security.
With over 5,000 km of coastline, Madagascar has immense fishery resources. In the Menabe region, human activities and natural disasters threaten coastal ecosystems, and overfishing in certain areas is leading to a decline in fishing yields. With the support of Louvain Coopération and the Organisme Public de Coopération Intercommunale (OPCI), local communities in the Tsiribihina delta have set up temporary fishing reserves for the sustainable management of marine resources.
In Madagascar, the fishing sector is dominated by traditional and artisanal fishing, which employs an estimated 102,000 people across the country. Fishing products are used in part to feed family members, but above all they generate valuable income. In western and southwestern Madagascar, an estimated 95% of households in coastal villages depend primarily on this sector. Extreme poverty persists among this segment of the population, affecting more than 70% of traditional fishermen.
In Menabe, migration caused by repeated droughts in the south of the country is increasing demographic pressure on the coast and, consequently, on natural resources. The use of non-compliant fishing nets (with meshes that are too small) and the destruction of mangroves for household wood needs further threaten the environment. Furthermore, the risks associated with climate change and the increase in the number of natural disasters in the region (cyclones, floods) are exacerbating this fragile situation. This situation is resulting in a decline in fishing yields, stagnation or even a reduction in catches, and a change in the composition of catches in terms of species and size.